ACKRELL CAPITAL CHAPTER IV_ U.S. Legal Landscape m The Path to Federal Legalization We believe that cannabis will eventually become federally legal for recreational enjoyment by adults and for use in a broad range of safe drugs and therapeutic products. A wide gulf currently separates federal policy from state legalization initiatives. Both federal and state regulators lack experience with science-based regulation that allows cannabis access, but they approach this lack of experience differ- ently. Current federal policy is slow-turning and bureaucratic; it requires rigorous scientific evidence that cannabis is safe and effective but largely prohibits the industry from developing that evidence. State legalization initiatives are experimental: they start by legalizing the cannabis industry, then task state regulators with implementing rules and safeguards as the industry builds its scientific foundation and its markets. We believe that federal policy will move (and may already be moving) in a new direction which allows for federally approved cannabis-derived drugs. If that happens, and if several cannabis-derived drugs are federally approved, we expect the FDA and the DEA will have developed data and protocols that facilitate more rapid approval of medical cannabis products. And if that happens, these federal agencies should be able to combine their science-based regulatory practices with the best practices of state regulators to develop a comprehensive federal approach to medical and recreational cannabis. DEA and FDA Policy Direction The path to federal legalization begins with understanding that current federal law, in theory, allows for the production, distribution and prescription of medical cannabis products in the United States. The DEA can register manufacturers to produce medical cannabis products in accordance with the CSA. The FDA can approve medical cannabis products for distribution in accordance with the FD&C Act. The DEA (an agency of the DOJ) and t